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Top 3 Industries Benefiting From President Biden

Jun 24, 2021

Long-term, whoever is cast as President in the US makes little impact on industries’ futures. However, in the short-term, intentions through either policies or promises can give certain industries an advantage.

Renewable Energy

As Biden announces the return of the US into the Paris climate accord merely hours after inaugurated as president, the western superpower is back on track to meeting global climate targets. Biden is laying the foundation for renewable energy to eventually replace legacy fuels with government support.

The collective transition away from legacy fuels accentuates the focus on renewable energy sources. The Keystone XL pipeline is a prime example – President Biden cancelled the permit for the $9 billion pipeline during his first day in office.

Even Biden’s appointment of renewable energy advocates to the Federal Energy Regulatory Commission (FERC) will help transform the landscape of energy in the US. Normally, the White House places five commissioners. Under Trump and the Republicans, their focus was coal – a core-pillar of Trump’s 2016 election promise to restore American Jobs. Biden’s appointed commissioners have the propensity to end inhibiting policies such as the Minimum Offer Price Rule – a policy restricting bids by state-subsidised renewable energy sources into cash pools/capacity markets.

Healthcare

Healthcare stocks during Biden’s presidency should thrive. Trump during his presidency reduced the Affordable Care Act’s reach significantly by narrowing outreach and subsidies. Biden fought alongside Obama to push the affordable care act on March 2010, reinforcing his position to enhance the ACA during his campaign trail. As Biden intends to push subsidies for health insurance, revitalising the ACA, the healthcare sector will flourish once Covid-19 is resolved. However, this may not be the same for the Pharmaceutical industry.

Technology

Covid-restrictions correlated with surges in technology stocks, namely Zoom and Microsoft – companies that accommodated remote business operations. With mandated masks in all public areas of transport being issued on day 1 of Biden’s tenure as president, further restrictions on a federal level are likely to be imposed. The American worker’s deepening reliance on technology and ultimately the companies enabling telecommuting will abate in raising their share price.